Make The World
More Sustainable[Provisional Translation Only]
This English translation of the original Japanese document is provided solely for information purposes.
Should there be any discrepancies between this translation and the Japanese original, the latter shall prevail.

April 22, 2024
Ichigo Inc. (Tokyo Stock Exchange Prime, 2337)
Representative: Scott Callon, Chairman
Inquiries: Takanori Sakamatsu, Executive Managing Director
Telephone: +81-3-4485-5221 www.ichigo.gr.jp/en

Sale of Residential Assets for Launch of Fourth Ichigo Residence Token
Ichigo Owners, Ichigo’s wholly-owned subsidiary, is expanding its digital real estatebusiness leveraging highly secure security tokens on a blockchain platform.
Following the launch of its third token last November, Ichigo Owners will begin sales of
its fourth token, Ichigo Residence Token: Nishi Azabu, Yoyogi, Hatchobori, Ueno,
Monzen Nakacho, Asagaya, & Kanamachi, with underlying assets comprising sevenresidential assets (total JPY 10.2B) located in Tokyo’s 23 wards.
Note: A security token is a digital asset that represents ownership of an underlying asset,
which can be transferred using an electronic information processing system such as ablockchain.
1. Ichigo Residence Token Rationale
Ichigo’s current line-up of investment products available to individuals and businessowners includes direct investments in real estate assets, two J-REITs and a listed solar
producer, and the Ichigo Owners Co-Ownership business (offering small-lot investments
in diverse Ichigo Owners assets).
In order to expand its product offering and provide individuals and business owners withthe opportunity to easily invest in high-quality real estate backed by Ichigo’s longstanding asset management expertise and real estate know-how, Ichigo Owners launched
the Ichigo Residence Token in November 2022, and has decided to begin sales of its
fourth token with underlying assets comprising seven Tokyo residential assets withearnings stability that were strategically acquired by Ichigo Owners.
2. Digital Real Estate Outlook
Similar to traditional securities like stocks, the Ichigo Residence Token is regulated byJapan’s Financial Instruments and Exchange Act, and is a highly secure investment
product given that security ownership is managed on a blockchain, thus minimizing thechances of data fraud. Security tokens also enable small-lot investments in trust
beneficiary interests (juekiken), therefore providing individual investors the opportunity
to invest in alternative investments other than traditional stocks and bonds.
The launch of START, a new trading system designed for the distribution of security
tokens developed by Osaka Digital Exchange (“ODX”), has driven the transparency andliquidity of digital real estate transactions via security tokens, and the market is expected
to grow. With the aggregate AUM of J-REITs having grown to over JPY 20 trillion during
the past two decades and the AUM of private equity funds in Japan at a similar level,
Ichigo believes that digital real estate investments, which are based on security tokens,are a key growth area and will work to increase its presence within this field.
1

Ichigo Investment Advisors, Ichigo’s wholly-owned subsidiary with long-standing
expertise in managing two J-REITs, a listed solar producer, and private equity funds, will
manage the underlying residential assets of the fourth token and leverage its extensive
experience, real estate know-how, and hands-on approach to provide professional realestate asset management services to individual investors.
Ichigo will provide opportunities to make investments in high-quality real estate assets
broadly and readily available to many investors. Ichigo’s involvement throughout thevalue chain, starting with product creation through to investment of the underlying
assets, will establish touchpoints with new investors and is expected to contributetowards growing Ichigo’s long-term stock earnings. Ichigo will continue to work
towards growing its new digital real estate business and driving shareholder value.
Osaka Digital Exchange (ODX) Overview www.odx.co.jp/en
Name
Principal Businesses
Major Shareholders

Representatives
Address
Establishment Date
Registration & License

Osaka Digital Exchange Co., Ltd.
Operation of PTS for equities
Operation of START, a private security token tradingsystem
SBI PTS Holdings, Co., Ltd.
Sumitomo Mitsui Financial Group
Nomura Holdings, Inc.
Daiwa Securities Group Inc.
Cboe Worldwide Holdings Limited
Yoshitaka Kitao, Representative Director & Chairman
Kimio Mikazuki, Representative Director & President
3-2-18, Nakanoshima, Kita-ku, Osaka(Osaka Office)3-1-1, Roppongi, Minato-ku, Tokyo (Tokyo Office)April 1, 2021
Financial Instruments Dealer License, Kanto Financial
Bureau #3328
PTS Operation for Equities

3. Buyer Overview (Launch Date: May 23, 2024)
Name
Address
Representative
Relationship to Ichigo

GK IST Residence 4 (Operator of Fourth Ichigo
Residence Token)
3-1-1 Marunouchi, Chiyoda-ku, TokyoManaging Member: IST Residence 4Manager: Masakazu Hongo
The GK does not have any material capital orpersonnel relationship with Ichigo. Ichigo’s
consolidated subsidiary, Ichigo Investment Advisors,
will provide asset management services.

2

Reference: Ichigo Residence Token: Nishi Azabu, Yoyogi, Hatchobori, Ueno, Monzen
Nakacho, Asagaya, & Kanamachi Overview
Total Issue Price
JPY 3.156 billion (Expected as of today)
Total Assets Under
JPY 10.26 billion
Management
Investment Term
5 years and 2 months (Expected)
Asset Management
Ichigo Investment Advisors
Company
Custodian
Mitsubishi UFJ Trust and Banking Corporation
Security Token Issuer
Mitsubishi UFJ Trust and Banking Corporation
Lead Underwriter
SBI Securities Co., Ltd.
To ensure information transparency, disclosures regarding the security tokens will be
provided via a dedicated website, which will be made available starting on the same day
as the Ichigo Residence Token: Nishi Azabu, Yoyogi, Hatchobori, Ueno, Monzen
Nakacho, Asagaya, & Kanamachi. Disclosures will also be available on START-NET,ODX’s disclosure system, after the token begins trading on START.
The security tokens will be issued and managed using the Progmat blockchain platform.
https://progmat.co.jp (Japanese only)For inquiries, please contact Ichigo Investment Advisors at +81-3-4485-5230.
4. Transaction Schedule
Board Resolution Date
Contract Date
Settlement Date

April 22, 2024
May 23, 2024
May 23, 2024

5. Underlying Asset Details
Construction Completion
Date

Asset NameGRAN PASEO Nishi Azabu

December 2022

GRAN PASEO Yoyogi

March 2023

GRAN PASEO Hatchobori II

July 2023

GRAN PASEO Ueno

July 2023

GRAN PASEO Monzen Nakacho II

January 2023

GRAN PASEO Asagaya

December 2022

GRAN PASEO Kanamachi

May 2023

6. Earnings Impact
Ichigo expects to record FY25/2 revenue of JPY 10.2 billion from the sales of Ichigo
Residence Token: Nishi Azabu, Yoyogi, Hatchobori, Ueno, Monzen Nakacho, Asagaya,& Kanamachi, which has already been factored into Ichigo’s FY25/2 consolidated
earnings forecast.

3

Reference:
Underlying Assets of Ichigo Residence Token: Nishi Azabu, Yoyogi, Hatchobori, Ueno,Monzen Nakacho, Asagaya, & Kanamachi
GRAN PASEO Nishi Azabu

GRAN PASEO Yoyogi

4PASEO Hatchobori II

GRAN PASEO Ueno

5

GRAN PASEO Monzen Nakacho II

GRAN PASEO Asagaya

6

THE PASEO Kanamachi

7